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What can the internet do for your Business
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This article, written by Stuart Davidson, outlines the benefits gained
by those businesses who have fully embraced the internet, giving examples
and some common mistakes made by the majority of websites.
How websites are currently being used
Most firms are using their website as a brochure, letting
people know what they do and describing their products and services. They
also give information on their company such as their history and contact
details. Just as the company's tangibles (shop-front, vans, offices) are
the face of their organisation so too, and even more so, is their company
website. As a communication tool, just like adverts, various messages,
both clear and subtle, can be delivered. All graphic designers will explain
how the use of quality pictures and graphics can give the image of professionalism
and build credibility.
Some firms are generating new revenue streams via on-line selling over
the internet (commonly known as e-commerce or shopping carts).
With the advancement in technology, and in particular the
reduction in costs of telecommunications, companies are now looking at
the internet to help them in functional areas of the business, not just
sales and marketing, but also within finance, operations and human resources.
Looking for ways to incorporate internet technology throughout the company
is known as e-business. Whilst large corporations are ahead of the game,
the reduced costs and availability of software tools, have enabled smaller
companies to embrace the internet and reap the benefits.
The Benefits of using the Internet Effectively
- Increasing Sales
Selling products online is an obvious benefit, but do you have knowledge,
information, research material or courses which people may be interested
in. The Economist magazine sells not only previous articles but all
sorts of business reports, such as industry sector updates and competitors
analysis.
- Marketing your products
Direct marketing campaigns have been around for a long time. Targeting
potential customers who have agreed to receive emails on your products
and services is a cheaper, more effective faster way of reaching your
audience. Your home grown database of email addresses complimented
by 'rented lists' can kick-start your e-mail marketing campaign. Whether
it's a new product launch, special offers, announcements of forthcoming
sales, offers of discount coupons or events, e-mail campaigns are
immediate. The results will be seen quickly. You can test your campaign
on a select few and then refine your message before full implementation.
Increasing the search engine visibility (where your site is ranked
in the search engines) will drive potential customers to your website,
reducing the cost of generating leads.
The number of 'hits' to your website will peak after an advertising
campaign goes live. Comparing the number of visitors to your site
after the release will show the success of your ad campaign and this
will provide valuable information when deciding whether to rerun those
ads.
- Keeping your customers and increasing customer service
If the 'cost of sale' to current customers is less than it is for
new customers then it is imperative that companies concentrate on
retaining customers.
Could you provide your customers with any online tools? A firm of
accountants could provide their clients with an online expenses entry
system, or a PAYE calculator, or generate and send automatic email
reminders for their client's important due dates.
Could you provide your customers with tips, installation instructions
or industry news?
If your website is kept up-to-date and aims to serve the needs of
your customers then they will want to return to your site regularly.
This will enforce your company's presence firmly in the minds of your
customers and when they come to make purchasing decisions, guess who
they will choose.
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Increase efficiency and reduce costs
How much literature do you send through the post - glossy brochures,
forms, reports etc? Have you asked your customers and prospects if
they would prefer to receive information electronically? One of the
main objectives of a PLC's website is to provide company information
to their investors, especially the thick Annual Report and Accounts.
If investors want a copy of the Report and Accounts, they can get
it immediately on-line and it doesn't cost the company a thing. Also,
think of the time a company can save if their customers stop requesting
forms by phone and instead simply download them from the document
management system on the website.
My brother sells telecoms. He works from home, making appointments
etc. He travels 140 miles round trip to his office about once a week.
He drops off orders, occasionally may sit through a presentation from
the sales director or may learn some new tips from the top salesman.
All this could have been done with the use of the company's website.
I agree, you cannot take away the face-to-face aspect, but could a
visit once a week be replaced by once a month - three extra days a
month to sell (or play golf). With the use of multi-media e-presentations
companies could distribute corporate videos through their site and
after set-up costs distributing 10 or 1000 costs nothing.
It is always difficult for HR to get the company's business managers
together all in one room at the same time for training on relevant
topics, such as interview techniques, basic employment law or health
and safety. Managers often complain about the lack of concern HR show
for their busy schedules. An e-learning course could enable each manager,
to go through a course at their own pace and at the time and location
of their choice.
Examples of using a website
Here are a few example of how companies are effectively using the internet.
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A printing company's strategy was
to increase sales with an e-commerce solution. Visitors can get quotes,
and design, upload and order stationery etc on-line. They have a survey
form for visitors to subscribe to promotions and give feedback, and a FAQ
section to save both visitor's and staff time. |
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This company manage intellectual
assets for their clients. Apart from being a very 'business like' and professional
looking site, the site provides an interesting HR legal web-based application
where, amongst other things, contracts, e.g. employment contracts, can be
created on-line. |
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A firm of accountants have a site
which has a wealth of information and provides an impressive list of tools.
Every month they write about 7 useful articles on subjects such as financial
planning, stock market conditions and tax news. All previous months dating
from 1999 are available - that's nearly 500. I counted roughly 60 online
tools in the areas of retirement, savings, personal and home, tax and business
finance, ranging from "equipment leasing vs buying" to "15yrs
or 30yrs Mortgage". The tools and articles are developed by a software
developer and are integrated seamlessly into their site. |
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Common mistakes
First and foremost you need to be crystal clear about what
it is you are trying to achieve, what are your objectives? For an accountant
who is happy with the number of clients he has, wants to retain those
clients and replace the few which leave, increasing customer service and
client retention is paramount. A firm of painters and decorators wishing
to expand by diversifying into the commercial sector, should aim at driving
traffic to their site to generate leads. The majority of sites I analyse
show to me that the company have not thought out either what the site
is trying to achieve or what they want me, as a visitor, to do. The sites
are simply there because the company "thought they ought to have
one". They are clearly missing out on an opportunity.
If a product can be bought anywhere, building relationships
with customers and satisfying their needs by basing your website on process
rather than product is crucial. If your site gives something for free,
such as news items, and is kept up-to-date, visitors will return and hopefully
buy your products.
If you want people to come to your site then it will need
to be seen. This is where most websites fail. Companies have invested
money sometimes in great graphics and produced a good looking site, but
nobody is coming in and the investment is wasted. Your website needs to
be developed in such a way to allow search engines to recognise what your
company provides. Optimising your site for search engines combined with
paying the search engines to show your site is all part of the ongoing
marketing you need.
If you have an e-commerce website with a 'shopping basket',
but to make a small increase in the price of a product you have to go
back to the company who built the site and pay a technicians fee, you
could have lost the profit margin on a lot of those products. For a shopping
basket flexibility is everything and being able to add/delete/change products
on demand at very little or no cost is crucial.
To build a web presence there are a multitude of skills
needed. There is a graphics component and copywriting - building the content.
Lifting the content from your brochure is not appropriate for the web.
A web developer will need to produce the code with possibly a database
designer to put in a 'back-end'. Then there is the ongoing marketing component
including search engine visibility. With the availability of easy-to-use
tools to build websites many specialists in one of these areas will be
able to sell you a website, but will they be able to produce a website
that is successful. I spoke to a company recently which went back to the
graphics/printing firm who produced their brochure, to commission an e-commerce
site. I asked them: Who is handling search engine visibility? How much
does it cost for the content management? What happens if they or the hosting
company goes bust? Is it your database or are your products incorporated
into a third-party's database? The answer to all these questions was "it
was not discussed". Yet they still managed to produce a website which
was not cheap.
When commissioning a website think of it like any
other investment decision. Ask yourself what are the goals and benefits
we are trying to achieve and how well do they align to our company's strategy?
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